Ecuador Answers South American Fertilizer Demand

Ecuadorian fertilizer Interests are looking to cash in on South America's booming Ag industry. The Ministry of Industry and Productivity announced last week from Quito the planned construction of an $800 million urea production complex in Ecuador. The plant is expected to startup in 2016 when it is projected to save Ecuador $120 million per year in fertilizer imports.

Port labor strikes and a lagging national infrastructure have historically made transport of commodities in South America problematic. The port of Paranagua in particular has been in the news since late summer for extended wait times to load and unload barges because of labor disputes over privatization -- delaying exports of soybeans and other commodities, and slowing the flow of much needed imported fertilizers.

As South American agriculture continues to expand, infrastructure will need to catch up and an increased measure of domestic fertilizer will go a long way to helping growers avoid delays in fertilizer deliveries. With an expected start in 2016, South American domestic nitrogen production will be a welcome sight in Ecuador.